Bambi, Mauro; Saïdi, Aurélien - 2008
and Lansing [1997].
Keywords: Increasing returns, Local indeterminacy, Welfare analysis, Numerical Methods.
JEL … others.1
In the literature the possibility of stabilizing an economy characterized by local indeterminacy has
been analyzed … local indeterminacy: both eigenvalues have
strictly negative real part and all equilibrium paths converge to the same steady …